Dicks Sporting Goods

Shares fell over 30% after Dick's cut its full-year guidance, blaming a highly promotional athletic-footwear market, excess inventory and cautious consumers for weaker sales and margins. The $2.4 billion Foot Locker acquisition underperformed, with pro forma comparable sales down 3.6% and a quarterly operating loss, offsetting 4.9% core-store growth at Dick's. Management trimmed revenue and EPS targets, said it will participate in promotional pricing to protect market share and is focusing on synergies, Fast Break stores and product innovation to restore momentum. » Más en forbes.com

DICK’S Sporting Goods reported adjusted Q2 EPS of $3.53 on revenues of $5.59 billion, both below consensus. The weaker result and charges related to the acquisition of Foot Locker led the company to lower its adjusted full-year EPS guidance to $11–12 (previously $13.50–14.50). The core business posted same-store sales growth of 4.9%, while Foot Locker showed a pro‑forma decline and operating losses. The stock fell about 20% premarket to $143.77 after the results and the reduced outlook were announced. » Más en de.investing.com

Dick’s Sporting Goods shares rose in premarket trading after Wells Fargo upgraded the stock from “Equal Weight” to “Overweight” and raised its price target from $220 to $240. Wells Fargo cited the recent share weakness as an attractive buying opportunity; the stock had fallen about 4% in the prior month. Options activity also increased ahead of the quarterly report expected on August 25, and analyst recommendations are mostly positive, with 15 buy, 10 hold and one sell rating. » Más en de.investing.com